The short answer
If you have a registered entity in South Africa or Egypt, you need payroll services. If you do not, you need an EOR — because someone must legally employ the person.
What payroll services cover
You remain the legal employer. The provider processes the payroll and statutory filings on your behalf.
- Monthly gross-to-net calculation and payslips
- Statutory withholding and filings (SARS, or Egyptian Tax Authority and social insurance)
- Payroll reporting and GL journals
- Employment liability stays with you
What an EOR covers
The EOR is the legal employer. It includes payroll, plus the employment relationship itself.
- Local employment contract issued by the EOR
- Full payroll and statutory compliance
- Statutory leave, notice and termination handling
- Employment liability carried by the EOR
- No local entity required
A simple decision framework
Ask three questions: Do we have an entity in this country? Do we plan to stay for more than 24 months? How many people will we hire? No entity means EOR. Entity plus a stable team means payroll and HR administration. Entity but no local HR capability means payroll plus HR administration together.
Cost differences
Payroll is priced per payslip or per employee and is the lower-cost option because you carry the employment risk. EOR is priced from a higher per-employee monthly fee, quoted as a starting price because legal and compliance risk varies by country, role and employee situation.